In a recent turn of events, the cryptocurrency market witnessed a cascade of liquidations exceeding $6 million following false information about BlackRock’s registration of an XRP exchange-traded fund (ETF). Despite a swift correction, the repercussions on XRP’s trading volume were unmistakable.
The False Alarm
The misinformation originated from a post on X (formerly Twitter), asserting that global asset manager BlackRock had applied for an XRP ETF under a new iShares XRP Trust entity in Delaware. The initial announcement sparked a flurry of activity, with traders reacting to the purported development.
However, the excitement was short-lived as a correction post swiftly followed, debunking the news as fake. Bloomberg analyst Eric Balchumas went a step further, affirming that he had personally verified the information with BlackRock. He attributed the false alarm to someone potentially misusing the BlackRock executive name.
Market Response
Despite the correction, Coinglass data revealed a significant sell-off in response to the initial news. Within a 24-hour period, liquidations in XRP surpassed $6.91 million, reflecting the market’s sensitivity to breaking developments, even if later proven false.
As of the latest update, XRP’s price stands at $0.66, indicating the impact of the false news on its valuation. Traders and investors are now closely monitoring the market to assess any lasting effects on XRP’s trajectory.
Interestingly, this incident occurred just days after BlackRock filed for the iShares Ethereum Trust in Delaware. Ethereum experienced a surge in its price, reaching $2,064. The contrasting fortunes of XRP and Ethereum underscore the influence of accurate information on cryptocurrency markets.
BlackRock’s Ongoing Crypto Endeavors
While BlackRock’s application for the iShares Ethereum Trust progresses positively, the spotlight remains on the pending decision regarding its spot Bitcoin ETF application by the United States Securities and Exchange Commission (SEC). The crypto community anxiously awaits the outcome, with hopes that approval could catalyze a substantial market surge.
The XRP ETF fake news incident serves as a stark reminder of the crypto market’s susceptibility to misinformation. Traders and investors are urged to exercise caution and verify information from reliable sources to mitigate the impact of false alarms on market dynamics.